Insightful comment from our Associate Kajsa Johansson regarding Clare Jones’ recent piece in the Financial Times discussing how The Bank of England has become the first major central bank to commit to offloading brown assets.
”On reading the Financial Times’ “The Old Lady Turns Green”, an especially interesting takeaway was the shift in governmental policy and attitude. It is now clear that economic decisions must consider climate change and thus how the economy can continue to grow in a sustainable way (both economically and environmentally). This realignment in priorities is not just about divesting from damaging investments, but also about actively investing in impactful companies and providing them some of the capital needed to reach a net zero economy. In order to fulfil the Paris Agreement, trillions of dollars of investments are needed and it is very positive to see the public sector taking an important step in the right direction.
However, as the UK Government makes this positive shift, I think it is also important to ask what more can the private sector do to support impactful companies working towards a sustainable future?
During this shift, I am happy to be working at ETF Partners in Europe, whose companies are leading in the green innovation space. ETF Partners works with ambitious founders who have impressive agendas, a great recipe to combat climate change that I am excited to be a part of.”
According to the article, “Under the new mandate, the Bank’s actions will, in the words of Governor Andrew Bailey, “reflect the government’s economic strategy for achieving strong, sustainable and balanced growth that is also environmentally sustainable and consistent with the transition to a net-zero economy.”
No doubt this is a fascinating step forward by the Bank of England.